The divorce agreement may designate alimony as nontaxable and nondeductible

Child support payments:

Ordinarily considered nontaxable income of the recipient

Are not deductible by the payer

Dependency exemptions:

Ordinarily, the custodial parent is entitled to claim the exemption, regardless of who pays child support

The noncustodial parent can claim the exemption if (1) the custodial parent agrees in writing (IRS form 8332 should be completed and attached to the noncustodial parent's return) or (2) a pre-1985 divorce decree or separation agreement grants the exemption to the noncustodial parent and the noncustodial parent provides at least $600 in child support for the year

Medical expenses deduction:

Custody of the child isn't required

Claiming the child as a dependent isn't required (although you must be eligible to claim the child as a dependent)

Medical expenses are only deductible as an itemized deduction on Schedule A, Form 1040, to the extent they exceed 7.5% of adjusted gross income (AGI) on the tax return

1Child and dependent care credit:

Can only be claimed by the custodial parent

Must be for child-care expenses incurred so you can work

Can claim, if qualified, even if you're not claiming the child as a dependent because you release the right to claim the child to the noncustodial parent

Child (and additional child) tax credit:

Can claim, if qualified, for a child you claim as a dependent

Custody of the child isn't required

Education tax credits:

You must be claiming the child as a dependent

You must have paid qualified tuition and/or related expenses

1 Beginning in 2013, the 7.5% AGI threshold for medical expenses will increase to 10%, unless you or your spouse have reached age 65.

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